Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
Charity registration number 1197381
THE ELDEST FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
H S M Nasralla H A Mahmoud A M Hasan
Trustees H S M Nasralla H A Mahmoud A M Hasan Charity number 1197381 CIO number CE028261 Independent examiner Mohamedkazim S Bhaloo, FCCA 3 Hobbs House Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX Bankers Lloyds Bank plc
Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Statement of financial position | 6 |
| Notes to the financial statements | 7 - 12 |
Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The charity's objects as set out in its governing constitution are:
To advance the Shia Muslim Faith in the United Kingdom for the benefit of the public through the holding of prayer meetings, lectures, public celebration of religious festivals, and producing and/or distributing literature on Shia Islam to enlighten others about the Shia Muslim faith.
The promotion of religious harmony for the benefit of the public by:
a) educating the public in different religious beliefs including an awareness of their distinctive features and their common ground to promote good relations between persons of different faiths.
b) promoting knowledge and mutual understanding and respect of the beliefs and practices of different religious faiths.
Public benefit
The trustees have complied with their duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance issued by the Charity Commission. The trustees have considered the general guidance on public benefit issued by the Charity Commission and in particular its supplementary guidance on the advancement of religion for the public benefit in deciding what activities the charity should undertake.
Achievements and performance
During the year, the Trustees successfully met the CIO's objectives by supporting a number of major community events. Some of these include the following. The CIO collaborated with a youth organisation and a local mosque to organise a month-long series of activities during the Islamic month of Ramadan. These included daily iftar (breaking of fast), lectures, Quranic recitations, and entertainment, catering to more than 10,000 attendees across the 30 days.
During the Islamic month of Muharram, the CIO supported a major event to commemorate the martyrdom of Imam Hussain, the grandson of the Holy Prophet Mohammed. This included lectures, eulogies, and the distribution of food, drawing over 10,000 attendees across the 10-day period.
The CIO proudly supported a two-month campaign celebrating the life and legacy of Lady Fatima, daughter of the Holy Prophet Mohammed. The campaign highlighted the pivotal role of women in Islam and sought to empower women within our community. Through a series of events, including lectures, workshops, and cultural festivals, the initiative showcased Lady Fatima’s virtues of compassion, strength, and leadership as an enduring example for all. The campaign also created spaces for dialogue on the contributions of women to society, inspiring attendees to recognise and celebrate the significant role of women in faith, family, and public life. This initiative reflects the CIO’s commitment to fostering empowerment, education, and unity within the community.
A key campaign known as "Gifts from a Messenger", was also one the CIO supported, which is an initiative that reflects the spirit of interfaith respect and kindness, as Muslims gift children hospitalised in London on Christmas Day in the name of their Prophet Mohammed. These gifts are offered to the "guests of Jesus," who is assumed to be the host of Christmas, symbolising the unity and shared values between faiths.
The Charity played a pivotal role in the development and ongoing support of Wadi Funeralcare, a specialised funeral directory dedicated to serving the unique needs of the Shia Muslim community. The charity also provided temporary conduit funding to Wadi Funeralcare over part of the period.
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Looking ahead, the Charity plans to expand its community outreach by supporting at least two additional initiatives in the coming year. These include key campaigns, like one that supports homeless individuals through food distribution efforts, and another that encourages the community to donate blood to support those in medical need. Both campaigns are grounded in Islamic principles, emphasising how faith inspires acts of compassion and charity.
By aligning these efforts with spiritual guidance, the Charity seeks to highlight the profound connection between faith and the drive to serve others. These initiatives reflect the Charity’s ongoing commitment to addressing community needs and fostering collective well-being.
Financial review
The results for the year are set out on the Statement of Financial Activities and notes to the accounts.
The charity's source of income is voluntary donations from individuals and organisations. Income is applied solely towards the promotion of the charity's objects and cash flow is closely monitored. Total income for the year was £82,064 (2022: £nil). Total resources expended were £44,256 (2022: £44,256). The charity achieved an overall net income for the year of £37,808 (2022: £nil). Fund balances at the year end were £37,808 (2022: £Nil). All funds at the year end were unrestricted funds available to spend on charitable activities in forthcoming years.
Reserves policy
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Structure, governance and management
The Eldest Foundation is a Charitable Incorporated Organisation (CIO) whose voting members are its charity trustees. The only persons eligible to be members of the CIO are its charity trustees. The governing document is a constitution dated 4 January 2022.
The trustees who served during the year and up to the date of signature of the financial statements were: H S M Nasralla
H A Mahmoud S J Karim (Resigned 5 November 2023) A M Hasan (Appointed 5 November 2023)
Recruitment and appointment of trustees
The provisions for appointment and removal of trustees are contained within the governing document. The first charity trustees are appointed for a term of five years. Apart from the first charity trustees, every trustee must be appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees.
In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the charity.
Organisational structure
The trustees are responsible for decision making and governance. Decisions are made at meetings of the Board of Trustees when a quorum of charity trustees is present. The charity trustees have the power to delegate any of their functions to committees and, if they do, to revoke the delegation. At least one member of a committee must be a trustee.
Remuneration policy
None of the trustees receives any remuneration or has any beneficial interest in the charity.
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Statement of trustees' responsibilities
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the governing document. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
H S M Nasralla
Trustee
21 January 2025
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE ELDEST FOUNDATION
I report to the trustees on my examination of the financial statements of The Eldest Foundation (the charity) for the year ended 31 December 2023.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
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I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Mohamedkazim S Bhaloo, FCCA
3 Hobbs House Harrovian Business Village Bessborough Road Harrow Middlesex HA1 3EX
Dated: 21 January 2025
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted | ||
|---|---|---|
| funds | ||
| 2023 | ||
| Notes | £ | |
| Income from: | ||
| Donations and legacies | 3 | 82,064 |
| Total income | 82,064 | |
| Expenditure on: | ||
| Raising funds | 4 | 2,172 |
| Charitable activities | 5 | 42,084 |
| Total expenditure | 44,256 | |
| Net income and movement in funds | 37,808 | |
| Reconciliation of funds: | ||
| Fund balances at 1 January 2023 | - | |
| Fund balances at 31 December 2023 | 37,808 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
| Notes Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Net assets excluding pension liability The funds of the charity Unrestricted funds |
2023 £ 26,668 12,580 39,248 (1,440) |
£ 37,808 37,808 37,808 37,808 |
2022 £ - - - - |
£ - |
|---|---|---|---|---|
| - | ||||
| - | ||||
| - |
The financial statements were approved by the trustees on 21 January 2025
H S M Nasralla Trustee
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
Charity information
The Eldest Foundation is a Charitable Incorporated Organisation, registered in England. The principal office is 111 High Road, London, NW10 2SL.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised or discounted.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
1.8 Taxation
As a registered charity, the organisation is exempt from income tax and corporation tax to the extent that its income and gains are applied towards the charitable objects of the charity and for no other purpose. VAT is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities.
1.9 Winding up or dissolution of the charity
If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Income from donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 82,064 | - |
Donated goods and services
In addition to the donations and gifts recorded above, the charity makes use of services donated by volunteers, as and when required, which reduces charitable expenditure. A reliable estimate of the cost of the time and effort donated by volunteers in assisting the charity is not possible to quantify.
4 Expenditure on raising funds
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Fundraising and publicity | ||
| Advertising | 2,172 | - |
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
5 Expenditure on charitable activities
| Charitable | |
|---|---|
| Events | |
| 2023 | |
| £ | |
| Direct costs | |
| Charitable Events | 36,034 |
| Share of support and governance costs (see note 7) | |
| Support | 4,610 |
| Governance | 1,440 |
| 42,084 | |
| Analysis by fund | |
| Unrestricted funds | 42,084 |
6 Description of charitable activities
Charitable Events
The Eldest Foundation supports and runs various community initiatives and events throughout the year that contribute to the achievement of the charity's objects. This includes, but is not limited to, religious occasions.
7 Support costs allocated to activities
| Support costs allocated to activities | ||
|---|---|---|
| IT Expense Repairs & Maintenance Bank Charges Insurance Printing, postage and stationary Sundry expenses Governance costs Analysed between: Charitable Events |
2023 £ 551 2,900 192 44 774 149 1,440 6,050 6,050 |
2022 £ - - - - - - - |
| - | ||
| - |
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 7 Support costs allocated to activities Governance costs comprise: Independent Examiner |
(Continued) 2023 2022 £ £ 1,440 - 1,440 - |
(Continued) 2023 2022 £ £ 1,440 - 1,440 - |
|---|---|---|
| - |
Support costs were all directly attributable to charitable events during the current and preceding year.
| 8 | Net movement in funds | 2023 | 2022 |
|---|---|---|---|
| £ | £ | ||
| The net movement in funds is stated after charging/(crediting): | |||
| Fees payable for the independent examination of the charity's financial | |||
| statements | 1,440 | - |
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration, expense allowances or benefits from the charity during the year.
10 Employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| Trustees | 3 | - |
The charity uses unpaid volunteers to assist in providing its charitable activities and for administrative tasks.
There were no employees whose annual remuneration was more than £60,000.
11 Debtors
| Debtors | ||
|---|---|---|
| 2023 | 2022 | |
| Amounts falling due within one year: | £ | £ |
| Other debtors | 26,668 | - |
Other debtors includes a concessionary loan of £26,608 measured at cost. This loan is interest-free and repayable within 180 days of written notice of demand.
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Docusign Envelope ID: 2110176E-B756-4489-8D8F-8729F16E9507
THE ELDEST FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
12 Creditors: amounts falling due within one year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Accruals | 1,440 | - |
13 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At | 1 | January | Incoming | Resources | At 31 | |
|---|---|---|---|---|---|---|
| 2023 | resources | expended | December | |||
| 2023 | ||||||
| £ | £ | £ | £ | |||
| General funds | - | 82,064 | (44,256) | 37,808 |
14 Related party transactions
During the period the charity provided temporary conduit funding to Wadi Funeralcare, a UK registered charity in which two of the Trustees are also trustees. At the reporting date, Wadi Funeralcare owed £26,608 (2022: £nil) to the charity in respect of a concessionary loan that has been used towards charitable expenditure.
Included within unrestricted donations are amounts received from the Trustees and their close family members, totalling £316 (2022: £nil).
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